Real Estate Math

An Iowa house sold for $252,000. The buyer paid 20% down and financed the rest at 5% for 25 years. Using a factor of $5.85 per $1,000, what is the monthly P&I?

A$1,054.80
B$1,178.64✓ Correct
C$1,203.48
D$1,247.40

Explanation

Loan = $252,000 × 80% = $201,600. Monthly P&I = (201,600 ÷ 1,000) × $5.85 = 201.6 × $5.85 = $1,179.36. Closest: $1,178.64.

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